Burmans' Religare stake past key 25%

Burman family entities on Wednesday acquired an extra 4% stake in Religare Enterprises Ltd to raise their holding to 25.18%, securing veto rights on special resolutions at the financial services company.

- Ranjani Raghavan

Before this, the four entities of the Burman family held around 21.18%.

Crossing the 25% mark is significant as it gives the Burmans a say in every major decision; special resolutions that require 75% of shareholder approval will need approval from the Burman family.

Under the Securities and Exchange Board of India’s (Sebi) takeover rules, shares purchased during an open offer period go into an escrow account, and the acquirer will be able to exercise voting rights on them only after the offer ends. Hence, the Burmans, who made an open offer for Religare on 25 September, will get voting rights for Wednesday’s purchase only once its offer is concluded.